Allied Properties REIT (TSX:AP.UN) announced today that it has entered into an agreement to purchase 485 King Street West in Toronto for $8 million. The purchase is expected to close on November 14, subject to customary conditions.
THE PROPERTY
Located on the south side of King West at the foot of Brant Street, 485 King West is comprised of a building with approximately 13,200 square feet of GLA and 3,185 square feet of surplus land. The site is rectangular in shape with 7,545 square feet of area and 44 feet of frontage on King West. The building was built in 1896 as a textile warehouse and has been used as such since that time.
The property is between 469 King Street West, a Class I building Allied has owned since its IPO, and Allied's intensification project at 489, 495 and 499 King Street West (the "Project"). Allied recently received municipal approval for 300,000 square feet of GLA in connection with the Project. With 485 King West, Allied expects to improve the Project by (i) integrating the two properties to the east, (ii) increasing the approved GLA, (iii) extending the retail frontage and (iv) rationalizing the vehicular access off King West.